Introduction

How we organise information in our heads, evaluate it, give it weight and then store it in our memories impacts our decisions.

Part of the Finology short course, Behavioural Finance - Investment Decision-Making, this lecture looks at the concept of the schema, a mental model of the world we use to swiftly understand incoming information. We look at different schemas, how to select the best available schema and their advantages and disadvantages to decision-making.

Topics include:

• the mental model (schemas) for objects, events/situations, ...